Power Grid faces limited hit from virus rebates; growth outlook dim

Following the directive from the ministry of power, the board of Power Grid Corp. of India Ltd approved a one-time rebate of ₹1,075 crore to electricity distribution companies (discoms) and state electricity boards.

As part of the economic stimulus package, the government last month asked Power Grid to consider offering a rebate of 20-25% on interstate transmission charges for the period of the lockdown.

Shutting down of industries and commercial establishments adversely impacted cash flows of discoms, necessitating relief measures by the government. According to Motilal Oswal Financial Services Ltd, the rebate pertains to April and May when large parts of the country were under a lockdown.